“Following the acquisition of Somplast, 4.000 tonnes of polyethylene production capacities were added to TeraPlast Group. Of these, 3.000 tonnes represent the films capacity and 1.000 tonnes the pipe production capacity. In addition, TeraPlast acquires 20.000 sqm of halls in Nasaud,” the company said in a stock market announcement.
The transaction completed at the end of 2020 amounted to RON4.9 million and the stake was sold by regional investment fund SIF Banat Crisana, run by Bogdan Daragoi, former finance minister, per ZF’s aggregate data at that time.
TeraPlast Group is also implementing an EUR12 million investment that is co-financed through state aid for the construction of a biodegradable films factory in the Industrial Park of Saratel. Together with the acquisition of Somplast, TeraPlast’s investment in the flexible packaging business so far amounts over EUR13 million.
“The flexible packaging market in Romania amounts to EUR300 million and imports account for 47% of the market. With the flexible packaging investments, TeraPlast Group aims at replacing the imports in the market by offering Romanian qualitative products, certified at European standards. At the same time, the Group aims to become the leader of the Romanian flexible packaging market by 2022,” per the announcement.
TeraPlast Group’s turnover exceeded RON1 billion in 2020, and its net profit doubled on the year to RON79 million in 2020.
On February 26, 2021, TeraPlast Group announced the closing of the transaction for the sale of the steel products division to Kingspan Group. On February 26, the shares of TeraPlast in TeraSteel Romania and Serbia, respectively Wetterbest, were transferred to Kingspan, at which point the transaction price of RON373 million was paid, per a stock market report. Following the sale, TeraPlast Group shall be re-dimensioned and continues its activity through TeraPlast, TeraGlass, TeraPlast Recycling, TeraPlast Folii Biodegradabile and Somplast, with a strong focus on the plastics products, a field with great growth potential.
TeraPlast has a market value of RON1.4 billion. It is 46.8% owned by businessman Dorel Goia and 12.17% held by private pension fund Privat NN Pensii.
TeraPlast shares have been trading up 86.07% since the beginning of 2021, amid deals worth RON171.7 million, stock market data also show.